Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products.

  1. Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. PLEASEANSWER ALL 3 QUESTIONS I DONT HAVE ANY REMANING I NEED HELP THANKS !

  2. Overhead Direct Labor Hours (dlh) Product
    A B
    Painting Dept. $248,000 10,000 dlh 16 dlh 4 dlh
    Finishing Dept. 72,000 10,000 4 16
    Totals $320,000 20,000 dlh 20 dlh 20 dlh

    The factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is

    a.$99.20 per unit

    b.$64.00 per unit

    c.$49.60 per unit

    d.$28.80 per unit

image text in transcribed

2-Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours.

Overhead Direct Labor Hours (dlh) Product
A B
Painting Dept. $258,800 11,900 dlh 7 dlh 8 dlh
Finishing Dept. 76,400 10,400 5 7
Totals $335,200 22,300 dlh 12 dlh 15 dlh

Using a single plantwide rate, the factory overhead allocated per unit of Product B is

a.$15.03

b.$225.45

c.$180.36

d.$152.24

image text in transcribed

3-A company has a margin of safety of 25%, a contribution margin ratio of 30%, and sales of $1,000,000.

Required:

a. What is the break-even point in sales dollars? $

b. What is the operating income? $

c. If neither the relationship between variable costs and sales nor the amount of fixed costs is expected to change in the next year, how much additional operating income can be earned by increasing sales by $110,000?

image text in transcribed

Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Direct Product Overhead Labor Hours (dlh) A B Painting Dept. $248,000 10,000 dih 16 dlh 4 dlh Finishing Dept. 72,000 10,000 4 16 Totals $320,000 20,000 dlh 20 dlh 20 dlh The factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is Oa. $99.20 per unit Ob. $64.00 per unit Oc. $49.60 per unit Od. $28.80 per unit Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Direct Product Overhead Labor Hours (dlh) B Painting Dept. $258,800 11,900 dlh 7 dlh 8 dlh Finishing Dept. 76,400 10,400 5 7 Totals $335,200 22,300 dih 12 dlh 15 dlh Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. $15.03 Ob. $225.45 Oc. $180.36 Od. $152.24 A company has a margin of safety of 25%, a contribution margin ratio of 30%, and sales of $1,000,000. Required: a. What is the break-even point in sales dollars? $ b. What is the operating income? $ c. If neither the relationship between variable costs and sales nor the amount of fixed costs is expected to change in the next year, how much additional operating income can be earned by increasing sales by $110,000? $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management Accounting And Control

Authors: Don R. Hansen, Maryanne M. Mowen

3rd Edition

0324002327, 978-0324002324

More Books

Students also viewed these Accounting questions